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Shenandoah Telecommunications Company Reports Second Quarter 2025 Results

1. Glo Fiber subscribers increased 43.1%, reaching approximately 76,000. 2. Glo Fiber revenue grew 40.5% to $19.8 million year-over-year. 3. Overall revenue rose 3.2% to $88.6 million in Q2 2025. 4. Adjusted EBITDA increased 21.9%, expanding margin to 32% from 27%. 5. Net loss from continuing operations decreased to $9.0 million from $12.8 million.

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FAQ

Why Bullish?

Strong subscriber and revenue growth signals positive performance trends, reminiscent of past successful expansions.

How important is it?

The substantial growth metrics and improved financial performance are critical for investor confidence.

Why Long Term?

Sustained growth in Glo Fiber markets suggests ongoing value increase over time, similar to previous expansions.

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EDINBURG, Va., July 31, 2025 (GLOBE NEWSWIRE) -- Shenandoah Telecommunications Company (“Shentel” or the “Company”) (Nasdaq: SHEN) announced second quarter 2025 financial and operating results. Second Quarter 2025 Highlights Glo Fiber Expansion Markets1 data subscribers grew 43.1% compared to the second quarter of 2024 to approximately 76,000. Glo Fiber Expansion Markets revenue grew 40.5% compared to the second quarter of 2024 to $19.8 million. Total revenue grew 3.2% compared to the second quarter of 2024 to $88.6 million. Net loss from continuing operations was $9.0 million compared to $12.8 million in the second quarter of 2024. Adjusted EBITDA2 grew 21.9% compared to the second quarter of 2024 to $28.4 million. Adjusted EBITDA margin expanded from 27% in the second quarter 2024 to 32% in the second quarter 2025. “Our second quarter results reflect solid Glo Fiber growth and the successful realization of Horizon synergies that we expect will drive sustainable Adjusted EBITDA growth and margin expansion for Shentel,” said President and CEO, Christopher E. French. “Glo Fiber revenue grew 40.5% over the same period a year ago with an incremental margin of 71%. We also realized the full impact of our projected $13.8 million of annual run-rate synergies from the Horizon Telcom acquisition in the second quarter.” Shentel’s second-quarter earnings conference call will be webcast at 4:30 p.m. ET on Thursday, July 31, 2025. The webcast and related materials will be available on Shentel’s Investor Relations website at https://investor.shentel.com/. Second Quarter 2025 Results Compared with Second Quarter 2024 Revenue increased by $2.8 million, or 3.2%, to $88.6 million, primarily due to Residential & SMB - Glo Fiber Expansion Markets revenue growth of $5.7 million, or 40.5%, driven by a 43.1% year-over-year growth in data revenue generating units (“RGUs”). This growth was partially offset by Residential & SMB - Incumbent Broadband Markets3 revenue decline of $1.4 million, or 3.2%, and Commercial Fiber revenue decline of $1.2 million, or 6.0%. Residential & SMB - Incumbent Broadband Markets revenue decreased due to lower video revenue driven by a 14.5% decline in video RGUs. Commercial Fiber revenue decreased primarily due to $0.8 million in non-cash deferred revenue adjustment for a modified carrier contract and $0.9 million in early termination fees earned in the prior year. Excluding these variances, Commercial Fiber revenue grew 2.7% over the prior period 2024. Cost of services decreased by $1.9 million, or 5.5%, due to decreases in network payroll, line and programming costs. Selling, general and administrative expense decreased by $0.5 million, or 1.6%, due to decreases in professional fees and software maintenance costs, partially offset by an increase in property taxes. Restructuring, integration and acquisition expense decreased by $11.1 million, or 98.2%. Restructuring, integration and acquisition expense in 2024 related primarily to costs incurred to effect the acquisition of Horizon and integration of costs during the post-acquisition period. Depreciation and amortization increased by $9.5 million, or 37.2%, due to the Company’s expansion of its Glo Fiber network and a $4.2 million write-off of plant under construction inventory assets which are no longer expected to be used. Total broadband homes passed grew 92,847 to approximately 623,000, including 379,000 Glo Fiber Expansion Market passings and 244,000 Incumbent Broadband Markets passings. 1 Glo Fiber Expansion Markets consists of fiber to the home (“FTTH”) passings in greenfield expansion markets.2 See “Non-GAAP Financial Measures” below for a reconciliation to the most comparable GAAP measure.3 Incumbent Broadband Markets consists of Incumbent Cable Markets and Incumbent Telephone Markets with FTTH passings. Other Information Capital expenditures were $169.4 million for the six months ended June 30, 2025 compared with $150.9 million for the six months ended June 30, 2024. The $18.5 million increase in capital expenditures was primarily driven by expansion of the networks in Glo Fiber Expansion Markets and government-subsidized markets. The Company received $17.3 million and $7.7 million in government grant cash reimbursements during the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, the Company’s total available liquidity was $266.7 million, consisting of (i) cash and cash equivalents totaling $29.1 million; (ii) $143.0 million of availability under the Company’s revolving credit facility; and (iii) an aggregate of $94.6 million remaining reimbursements available under government grants, which reimbursements are subject to fulfilling the terms of the underlying agreements. During the six months ended June 30, 2025, the Company borrowed a total of $100.0 million under its term loans and had total indebtedness of $513.1 million as of June 30, 2025. The Company executed an Asset Purchase Agreement in April 2025 to acquire fiber-to-the-home assets and operations for $5 million, passing more than 1,500 homes and businesses with approximately 700 customers in Virginia. The Company completed the acquisition on July 9, 2025. 2025 Financial Outlook The Company initiates 2025 financial guidance.  Year Ending December 31,2025 Year EndedDecember 31,2024 % Change2024 to 2025Midpoint  Guidance Range   (dollars in millions)Low High   Total Revenue$352 $357 $328 8.1 % Adjusted EBITDA1$113 $118 $95 21.6 % Capital Expenditures, net of government grant reimbursements$260 $290 $300 (8.3)%  1 Further clarification and explanation of this non-GAAP measure can be found in the “Non-GAAP Financial Measures” section of this release below. The 2025 financial guidance presented above does not reflect any assumptions regarding the potential impacts of the evolving tariff environment. The Company does not provide a reconciliation for Adjusted EBITDA forecasts (which represents a forecast of a non-GAAP financial measure) because it cannot predict the special items that could arise without unreasonable effort. Earnings Call Webcast Date: Thursday, July 31, 2025Time: 4:30 p.m. ETListen via Internet: https://investor.shentel.com/For Analysts, please register to dial-in at this link. A replay of the call will be available for a limited time on the Investor Relations page of the Company’s website. About Shenandoah Telecommunications Shenandoah Telecommunications Company (Shentel) provides broadband services through its high speed, state-of-the-art fiber optic and cable networks to residential and commercial customers in eight contiguous states in the eastern United States. The Company’s services include: broadband internet, video, voice, high-speed Ethernet, dark fiber leasing, and managed network services. The Company owns an extensive regional network with over 17,700 route miles of fiber. For more information, please visit www.shentel.com. This release contains forward-looking statements and projections about Shentel regarding, among other things, its business strategy, its prospects and its financial position. These statements can be identified by the use of forward-looking terminology such as “believes,” “estimates,” “expects,” “intends,” “may,” “will,” “plans,” “should,” “could,” or “anticipates” or the negative or other variation of these or similar words, or by discussions of strategy or risks and uncertainties. The forward-looking statements are based upon management’s beliefs, assumptions and current expectations and may include comments as to Shentel’s beliefs and expectations as to future events and trends affecting its business that are necessarily subject to uncertainties, many of which are outside Shentel’s control. Although management believes that the expectations reflected in the forward-looking statements are reasonable, forward-looking statements are not, and should not be relied upon as, a guarantee of future performance or results, nor will they necessarily prove to be accurate indications of the times at which such performance or results will be achieved, and actual results may differ materially from those contained in or implied by the forward-looking statements as a result of various factors. A discussion of other factors that may cause actual results to differ from management’s projections, forecasts, estimates and expectations is available in Shentel’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024 and our Quarterly Reports on Form 10-Q. Those factors may include, among others, changes in overall economic conditions including rising inflation, changes in tariffs, regulatory requirements, changes in technologies, changes in competition, demand for our products and services, availability of labor resources and capital, natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as COVID-19, and other conditions. The forward-looking statements included are made only as of the date of the statement. Shentel undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events, except as required by law. CONTACTS: Shenandoah Telecommunications CompanyLucas BinderVice President of Corporate Finance540-984-4800Lucas.Binder@emp.shentel.com SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts)Three Months EndedJune 30, Six Months EndedJune 30,  2025 2024 2025 2024 Residential & SMB - Incumbent Broadband Markets1, 3$42,837  $44,243  $86,196  $88,047  Residential & SMB - Glo Fiber Expansion Markets2 19,796   14,093   38,240   26,211  Commercial Fiber3 19,483   20,723   39,095   30,706  RLEC & Other 6,452   6,740   12,935   10,083  Service revenue and other 88,568   85,799   176,466   155,047  Operating expenses:                Cost of services exclusive of depreciation and amortization 32,624   34,541   65,654   60,526  Selling, general and administrative 29,743   30,239   60,735   58,217  Restructuring, integration and acquisition 206   11,325   716   11,943  Depreciation and amortization 35,103   25,579   64,561   43,022  Total operating expenses 97,676   101,684   191,666   173,708  Operating loss (9,108)  (15,885)  (15,200)  (18,661) Other (expense) income:                Interest expense (6,003)  (3,996)  (10,895)  (8,072) Other income, net 3,015   1,908   3,748   3,644  Loss from continuing operations before income taxes (12,096)  (17,973)  (22,347)  (23,089) Income tax benefit (3,048)  (5,200)  (4,167)  (6,226) Loss from continuing operations (9,048)  (12,773)  (18,180)  (16,863) Discontinued operations:                (Loss) income from discontinued operations, net of tax —   (99)  —   1,882  Gain on the sale of discontinued operations, net of tax —   —   —   216,805  Total (loss) income from discontinued operations, net of tax —   (99)  —   218,687  Net (loss) income (9,048)  (12,872)  (18,180)  201,824  Dividends on redeemable noncontrolling interest 1,497   —   2,969   —  Net (loss) income attributable to common shareholders$(10,545) $(12,872) $(21,149) $201,824                   Net (loss) income per share attributable to common shareholders,basic and diluted:                Loss from continuing operations$(0.19) $(0.24) $(0.38) $(0.32) (Loss) income from discontinued operations, net of tax —   —   —   4.16  Net (loss) income per share$(0.19) $(0.24) $(0.38) $3.84                   Weighted average shares outstanding 55,103   54,730   55,032   52,620   1 Revenue from residential and small and medium business (“SMB”) customers in Incumbent Broadband Markets is primarily earned through the Company’s provision of data, video and voice services over primarily hybrid fiber coaxial cable and to a lesser extent fiber to the home (“FTTH”) networks in incumbent markets.2 Revenue from residential and SMB customers in Glo Fiber Expansion Markets is primarily earned through the Company’s provision of data, video and voice services over FTTH networks in new greenfield expansion markets.3 Shentel updated the presentation of certain Residential & SMB - Incumbent Broadband Markets and Commercial Fiber revenues in the prior year to conform with changes in how management currently views these lines of business. SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)June 30,2025 December 31,2024 ASSETS      Current assets:      Cash and cash equivalents$29,077 $46,272 Accounts receivable, net of allowance for credit losses of $1,125 and $1,156, respectively 34,551  29,722 Income taxes receivable 3,278  1,244 Prepaid expenses and other 16,445  17,282 Total current assets 83,351  94,520 Investments 15,974  15,709 Property, plant and equipment, net 1,523,994  1,438,538 Goodwill and intangible assets, net 156,832  157,723 Operating lease right-of-use assets 19,442  19,548 Deferred charges and other assets 15,081  14,235 Total assets$1,814,674 $1,740,273 LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY      Current liabilities:      Current maturities of long-term debt, net of unamortized loan fees$10,203 $9,204 Accounts payable 62,516  57,820 Advanced billings and customer deposits 16,831  16,104 Accrued compensation 11,314  16,283 Current operating lease liabilities 2,933  3,060 Accrued liabilities and other 11,143  12,100 Total current liabilities 114,940  114,571 Long-term debt, less current maturities, net of unamortized loan fees 501,611  407,675 Other long-term liabilities:      Deferred income taxes 163,268  167,716 Benefit plan obligations 4,934  4,945 Non-current operating lease liabilities 10,378  10,794 Other liabilities 32,146  33,525 Total other long-term liabilities 210,726  216,980 Commitments and contingencies      Temporary equity:      Redeemable noncontrolling interest 85,433  82,464 Shareholders’ equity:      Common stock, no par value, authorized 96,000; 54,897 and 54,605 issued and outstanding atJune 30, 2025 and December 31, 2024, respectively —  — Additional paid in capital 153,116  147,733 Retained earnings 747,848  768,997 Accumulated other comprehensive income, net of taxes 1,000  1,853 Total shareholders’ equity 901,964  918,583 Total liabilities, temporary equity and shareholders’ equity$1,814,674 $1,740,273   SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)Six Months EndedJune 30,  2025 2024 Cash flows from operating activities:        Net (loss) income$(18,180) $201,824  Income from discontinued operations, net of tax —   218,687  Loss from continuing operations (18,180)  (16,863) Adjustments to reconcile net (loss) income to net cash provided by operating activities:        Depreciation and amortization 63,613   42,424  Amortization of intangible assets 948   598  Stock-based compensation expense, net of amount capitalized 5,904   6,236  Deferred income taxes (4,167)  (6,226) Provision for credit losses 804   1,266  Other, net 165   150  Changes in assets and liabilities        Accounts receivable 1,155   965  Current income taxes 217   234  Operating lease assets and liabilities, net (437)  (233) Other assets (2,345)  (3,354) Accounts payable 975   (1,140) Other deferrals and accruals (4,931)  (882)  Net cash provided by operating activities - continuing operations 43,721   23,175   Net cash used in operating activities - discontinued operations (2,251)  (5,476)  Net cash provided by operating activities 41,470   17,699           Cash flows from investing activities:        Capital expenditures (169,432)  (150,914) Government grants received 17,281   7,653  Cash disbursed for acquisition, net of cash acquired —   (347,411) Proceeds from sale of assets and other 243   1,715  Net cash used in investing activities - continuing operations (151,908)  (488,957) Net cash provided by investing activities - discontinued operations —   305,827  Net cash used in investing activities (151,908)  (183,130)          Cash flows from financing activities:        Proceeds from credit facility borrowings 100,000   —  Principal payments on long-term debt (4,893)  (2,618) Payments for debt amendment costs (430)  (4,390) Proceeds from the issuance of redeemable noncontrolling interest, net of financing fees paid —   79,380  Taxes paid for equity award issuances (1,035)  (1,671) Payments for financing arrangements and other (399)  (746) Net cash provided by financing activities 93,243   69,955  Net decrease in cash and cash equivalents (17,195)  (95,476) Cash and cash equivalents, beginning of period 46,272   139,255  Cash and cash equivalents, end of period$29,077  $43,779           Supplemental Disclosures of Cash Flow Information        Interest paid, net of amounts capitalized$(9,891) $(6,526) Income taxes paid$(2,034) $(7,085)   Non-GAAP Financial MeasuresAdjusted EBITDA and Adjusted EBITDA Margin The Company defines Adjusted EBITDA as (loss) income from continuing operations calculated in accordance with GAAP, adjusted for the impact of depreciation and amortization, impairment expense, other income (expense), net, interest income, interest expense, income tax expense (benefit), stock compensation expense, transaction costs related to acquisition and disposition events (including professional advisory fees, integration costs, and related compensatory matters), restructuring expense, tax on equity award vesting and exercise events, and other non-comparable items. A reconciliation of (loss) income from continuing operations, which is the most directly comparable GAAP financial measure, to Adjusted EBITDA is provided below herein. Adjusted EBITDA margin is the Company’s calculation of Adjusted EBITDA, divided by revenue calculated in accordance with GAAP. The Company uses Adjusted EBITDA and Adjusted EBITDA margin as supplemental measures of performance to evaluate operating effectiveness and assess its ability to increase revenues while controlling expense growth and the scalability of the Company’s business growth strategy. Adjusted EBITDA is also a significant performance measure used by the Company in its incentive compensation programs. The Company believes that the exclusion of the expense and income items eliminated in calculating Adjusted EBITDA and Adjusted EBITDA margin provides management and investors a useful measure for period-to-period comparisons of the Company’s core operating results by excluding items that are not comparable across reporting periods or that do not otherwise relate to the Company’s ongoing operations. Accordingly, the Company believes that Adjusted EBITDA and Adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating the Company’s operating results. However, use of Adjusted EBITDA and Adjusted EBITDA margin as analytical tools has limitations, and investors and others should not consider them in isolation or as substitutes for analysis of our financial results as reported under GAAP. In addition, other companies may calculate Adjusted EBITDA and Adjusted EBITDA margin or similarly titled measures differently, which may reduce their usefulness as comparative measures.  Three Months EndedJune 30, Six Months EndedJune 30, (in thousands)2025 2024 2025 2024 Loss from continuing operations$(9,048) $(12,773) $(18,180) $(16,863) Depreciation and amortization 35,103   25,579   64,561   43,022  Interest expense 6,003   3,996   10,895   8,072  Other income, net (3,015)  (1,908)  (3,748)  (3,644) Income tax benefit (3,048)  (5,200)  (4,167)  (6,226) Stock-based compensation 2,187   2,270   5,904   6,236  Restructuring, integration and acquisition 206   11,325   716   11,943  Adjusted EBITDA$28,388  $23,289  $55,981  $42,540                   Adjusted EBITDA margin 32%  27%  32%  27%   Supplemental Information In the below table, Shentel updated the presentation of certain Residential & SMB - Incumbent Broadband Markets and Commercial Fiber revenues in the prior year to conform with changes in how management views these lines of business. Operating Statistics  Three Months EndedJune 30,  2025 2024 Homes and businesses passed (1)      Incumbent Broadband Markets244,007  232,531  Glo Fiber Expansion Markets378,916  297,545  Total homes and businesses passed622,923  530,076         Residential & Small and Medium Business (“SMB") Revenue Generating Units("RGUs"):      Incumbent Broadband Markets111,730  111,256  Glo Fiber Expansion Markets76,276  53,285  Broadband Data188,006  164,541  Video37,626  42,079  Voice26,129  24,848  Total Residential & SMB RGUs (excludes RLEC)251,761  231,468         Residential & SMB Penetration (2)      Incumbent Broadband Markets45.8% 47.8% Glo Fiber Expansion Markets20.1% 17.9% Broadband Data30.2% 31.0% Video6.0% 7.9% Voice4.4% 4.9%        Fiber route miles17,740  16,029  Total fiber miles (3)1,936,922  1,798,211   (1) Homes and businesses are considered passed (“passings”) if we can connect them to our network without further extending the distribution system. Passings is an estimate based upon the best available information. Passings will vary among video, broadband data and voice services. (2) Penetration is calculated by dividing the number of users by the number of passings or available homes, as appropriate. (3) Total fiber miles are measured by taking the number of fiber strands in a cable and multiplying that number by the route distance. For example, a 10 mile route with 144 fiber strands would equal 1,440 fiber miles.(4) Glo Fiber Expansion Markets consists of FTTH passings in greenfield expansion markets.(5) Incumbent Broadband Markets consists of Incumbent Cable Markets and Incumbent Telephone Markets with Fiber-To-The-Home (“FTTH”) passings. Residential & SMB ARPU  Three Months EndedJune 30, Six Months EndedJune 30,  2025 2024 2025 2024 Residential & SMB Revenue:            Incumbent Broadband Markets 27,850  27,976  55,726  55,441 Glo Fiber Expansion Markets 16,920  11,840  32,684  22,033 Broadband Data$44,770 $39,816 $88,410 $77,474 Video 14,296  14,893  28,954  29,273 Voice 2,557  2,611  5,116  5,113 Other 1,010  1,016  1,956  2,398 Total Residential & SMB Revenue$62,633 $58,336 $124,436 $114,258              Average RGUs:            Incumbent Broadband Markets 111,779  111,689  111,653  110,472 Glo Fiber Expansion Markets 73,514  50,888  70,691  47,525 Broadband Data 185,293  162,577  182,344  157,997 Video 38,076  42,443  38,666  41,869 Voice 26,082  24,717  25,969  24,660              ARPU: (1)            Incumbent Broadband Markets$83.05 $83.49 $83.18 $83.64 Glo Fiber Expansion Markets$76.72 $77.56 $77.06 $77.27 Broadband Data$80.56 $81.64 $80.81 $81.73 Video$125.15 $116.96 $124.80 $116.53 Voice$32.68 $35.21 $32.83 $34.56  (1) Total fiber miles are measured by taking the number of fiber strands in a cable and multiplying that number by the route distance. For example, a 10 mile route with 144 fiber strands would equal 1,440 fiber miles. Shentel updated the presentation of certain revenues in the prior year to conform with changes in how management views these lines of business. This reclassification also resulted in updated ARPU values for the prior period.

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